KCB Bank has received the court’s approval to auction seven houses that are located in Karen’s Kerarapon area over a disputed loan of up to Sh486 million. This loan was taken by Makenna Wambui Nyammo who is the director of real estate firm Mahugu Limited to build the Karen houses.
According to the ruling that was delivered by Justice Peter Mutua Mulwa on July 10, 2025, Ms Nyammo through Mahugu Limited had sought to a temporary injunction restraining KCB Bank from selling, transferring, disposing of, leasing or otherwise interfering with house units 2, 3, 6, 7, 13, 15 and 19 that are built on the Land Reference No. 5842/13 (Original No. 5842/2/12) which is situated in Kerarapon Karen. She had also sought an order order restraining the bank from evicting tenants of house units 2, 6, 13, 15 and 19.
In her petition, Nyammo had told the court that KCB Bank had given her a loan amounting to Sh446,250,000 in 2013, and a top of Sh39,795,712 in 2015. The loan was to be used in the completion of 20 villas on the parcel of land. It was secured using a charge over the property and Sh50 million in a fixed deposit account.
Ms Nyammo told the court that 10 villas were sold and the amount of Sh500 million from the sale of the houses was deposited in her account in 2022 before the bank issued statutory notices. However, she says that she engaged auditors and found out that the bank had allegedly overcharged her Sh60,298,312 in interest.
However, the bank opposed these claims, saying that there was no evidence to show that Sh500 million from the sale of the ten houses was ever deposited in the bank account.
The bank further told the court that house units 3 and 7 were sold without the bank’s consent which was in breach of the charge terms.
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In its ruling, the court sided with KCB Bank after determining that Ms Nyammo had not demonstrated that she stood to suffer any loss incapable of being compensated by damages.
“The units are revenue-generating and capable of valuation… It is a settled principle that once property is offered as security, it becomes a commodity for sale in the event of default. Once property is offered as security it by that very fact becomes a commodity for sale. And there is no commodity for sale whose loss cannot be compensated adequately in damages,” Justice Mulwa ruled.
